ABA Offers Early Retirement to Cut Staff
WASHINGTON - In an effort to cut costs, the American Bankers Association has decided to trim its staff.
The trade group announced on Tuesday that 10 of 12 employees who were offered incentives for retiring early have accepted. Remaining employees will take over their duties.
Three of the 10 departing staff members are on the ABA's executive staff; their departures will whittle executive director Donald G. Ogilvie's team to seven.
James Lodge, the ABA's executive director for communications, said the decision to offer early retirement packages was made last spring - before a recent wave of big-bank mergers. But Mr. Lodge acknowledged that the ABA is trying to cut expenses in the face of declining dues income resulting from the industry's consolidation.
The ABA stands to lose about $250,000 this year from two big-bank mergers alone: Chemical/ Manufacturers Hanover and Bank of America/ Security Pacific. Failures and other combinations have also taken a toll.
The three senior staff members leaving are Thomas D. Dickinson, financial director; Bruce M. Rider, executive director for membership and administrative services; and Ralph Smeda, executive director for education policy and development.
Mr. Rider's and Mr. Dickinson's duties will be assumed by Robert A. Wallgren, who's new title is executive director for operations and finance. He was executive director for banking professions.
Mr. Smeda's responsibilities will be handled by J. Douglas Adamson, who will become executive director for bank programs and professional development. He had been the ABA's executive vice president for the Bank Marketing Association.
The retiring employees had combined service of 185 years. Their early retirement package includes lump-sum payments and medical coverage, according to Mr. Lodge. He declined to provide dollar figures but said the early retirements would provide "significant savings."